ShopperTrak's Four-Part COVID-19 Blog Series

This blog series penned by the ShopperTrak global retail consulting practice team shares insights that can help retailers and shopping center operators as they reestablish their connections to shoppers in the post COVID-19 retail reality.

Part 1: Looking Ahead to the Post COVID-19 Retail Reality
Brian Field, Senior Director of Retail Consulting Practice for ShopperTrak, introduces the new blog series and shares some key retail traffic data since the pandemic started.

Part 2: Why Retailer's Need to Reconsider their Operating Model as they Emerge from COVID-19
Pete McCall, senior manager of the ShopperTrak retail consulting practice, discusses what the new retail operating model must consider as retailers emerge from COVID-19.

Part 3: How to Win with Service and Labor in the Post COVID-19 Retail Reality
Andy Sumpter, our Retail Consultant from the ShopperTrak EMEA team, discusses what the Service and Labor model could look like in the "new reality."

Part 4: What does Customer Engagement Look Like in the Post COVID-19 Retail Reality?
Grant Gustafson, our Retail Consultant from the ShopperTrak North America team, discusses what Customer Engagement could look like in the "new reality."
 

 

---

Coronavirus Tracker: June 25

US: Over 2.4M Cases - 124K Dead - 1M Recovered
Worldwide: Over 9.6M Cases - 487K Dead - 5.2M Recovered

Fallen Officers From the COVID-19 Pandemic: 49 | NYPD Deaths: 45
Private Industry Security Guard Deaths: 150+
 

The pandemic is setting records for hospitalizations,
forcing states to rethink their reopening plans

U.S. Sets One-Day Record For New Coronavirus Cases

Across the United States, 38,115 new infections were reported by state health departments on Wednesday - surpassing the previous single-day record of 34,203 set on April 25.

Texas, Florida and California led the way, with all three states reporting more than 5,000 new cases apiece.

Three states - California, Florida and Oklahoma - reported record highs in new single-day coronavirus cases, while hospitalizations hit a new peak in Arizona, where intensive care units have quickly filled.

Even as case numbers climb, reports circulated that the federal government is poised to stop providing federal aid to testing sites in some hard-hit states, including Texas, prompting a top federal official to respond that testing was on the rise. washingtonpost.com nytimes.com

Texas pauses reopening plan as coronavirus cases and hospitalizations rise
Businesses that were permitted to open under the previous phases can continue to operate at the designated occupancy outlined by the Texas Department of State Health Services, according to statement from Abbott's office. "The last thing we want to do as a state is go backwards and close down businesses. This temporary pause will help our state corral the spread until we can safely enter the next phase of opening our state for business," Gov. Greg Abbott said in the release. cnbc.com

'No Evidence' Black Lives Matter Protests Caused COVID-19 Spike: Study
A study using data from Black Lives Matters protests across 315 of America's largest cities found "no evidence" in the following two and a half weeks that they caused a spike in the number of new COVID-19 cases. The paper, titled "Black Lives Matter Protests, Social Distancing, and COVID-19," also found "strong evidence" that the protests actually increased stay-at-home overall, likely because non-protesters chose to leave their homes less amid the demonstrations. newsweek.com

Parties - Not Protests - Are Causing Spikes In Coronavirus

US coronavirus deaths projected to reach 180,000 by October

Alarming spike sparks fears California is starting to lose battle against COVID-19

Houston employers reverse course, scale back re-opening as COVID-19 cases spike

Nevada Governor Orders Mask Wearing in Public After Virus Spike

Here are the 8 states that trigger coronavirus quarantines for travelers going to New York

No Dodging NY State: Cuomo: Out-of-state travelers to face 'random checks' to ensure quarantining

NYC could begin Phase Three on July 6, Mayor de Blasio says
 

The Business Impact

Most 'Exposed' Retailers
These retailers have the most stores in states where COVID cases are spiking
The investment firm Instinet analyzed a dozen states that as of last Friday had reported record highs in new Covid-19 cases: Florida, Texas, Utah, South Carolina, Nevada, Georgia, Missouri, Montana, Arizona, California, Tennessee and Oklahoma. In many of these states, cases have only grown since that time.

The chart below takes select retailers and looks at the percentage of their total U.S. stores that are based in those 12 states. The information for these calculations was drawn from the companies' annual reports.

Instinet found the retailers with the greatest exposure are the off-price chain Ross Stores, Costco and O'Reilly Auto Parts. Others on the list include AutoZone, Ulta Beauty, TJ Maxx owner TJX and Burlington. cnbc.com
 

Private Security Officers Target of Violence During Reopening of Businesses
Private security officers have once again become the target of violence since the reopening of businesses, malls, and nightclubs during the past few weeks.

To understand the dynamics of how private security officers are often the target of assaults, shootings, and death, you need not look any further than the past 7 days: Three security officers have been murdered, six others have been shot and two other security officers have been stabbed in unrelated incidents. And there have been numerous others physically assaulted while enforcing the rules and just doing their job.

Each year more than 27,000 assaults of security officers are reported and more than 100 security officer deaths occur according to national statistics catalogued by Private Officer International. privateofficer.com

How Much Covid-19 Cost Those Businesses That Stayed Open
A food distributor has paid $20 million for testing and plexiglass. T-Mobile US Inc. has spent $50 million on extra cleaning and safety gear. Walmart Inc. and three other big retail chains have put more than $3 billion into higher salaries, benefits and other Covid-19 measures.

Staying open during the pandemic wasn't cheap. Big companies say they spent anywhere from hundreds of thousands to almost a billion dollars in Covid-19-related costs. Some say they expect the costs to keep rising in coming quarters, even as they face uncertain demand from consumers.

The figures include increased pay for front-line workers, expanded cleaning and sanitization protocols, and the purchasing of coronavirus testing or personal protective equipment, according to a Wall Street Journal review of recent quarterly reports and earnings-call transcripts. These are extra expenses and don't reflect extra revenue or lost business. Some essential retailers that were open as well as makers of safety gear had a surge in revenue during the lockdown.

Here is a sampling of what companies have revealed. Many of these examples are companies with quarters that ended later than March 31 and included more of the lockdown. A clearer picture will come when more firms report their results for the current quarter, beginning next month.

Target - $1 billion
Walmart - $900 million
Kroger - $830 million
Home Depot - $640 million
T-Mobile - $117 million
wsj.com

New York City retailers welcome back shoppers but challenges loom

CVS Health offers COVID-19 test for employers

Disneyland Reopening Delayed Beyond July 17 As California's Coronavirus Cases Mount

San Diego, CA: Starbucks employee receives more than $21K in tips after refusing to serve a customer who wasn't wearing a mask

I've been recalled to work. Can my boss make me sign a coronavirus liability waiver?
 

Contact Tracing

$22 Million More for Contact Tracing
Arkansas Gov. Hutchinson announces plans to double amount of COVID-19 contact tracing as cases rise

Gov. Hutchinson said this is an "absolutely essential" step as we look at cases that increase in different parts of the state.

In a press conference on June 24, Governor Asa Hutchinson announced he has directed the Arkansas Department of Health to double the amount of contact tracers in the state. The number of contact tracers will be doubled from 350 to 700. The governor said this will be an additional cost of $22 million. thv11.com

Hundreds of thousands of jobs expected to be open in the next few years
Some of them require only a high school diploma or the equivalent. The jobs are in such demand that Johns Hopkins University is offering training for free. Johns Hopkins University, the leader in tracking the spread of the virus, is offering a free course in Contact Tracing through the end of the year and through the popular Coursera online resources. It's an online course that takes approximately 5 hours to complete.

To participate in the training, you simply sign up and then watch about 5 hours of online video classes, led by an instructor from Johns Hopkins. When you've completed the course, you'll receive a grade and a certificate of completion you can share on LinkedIn for when you apply for jobs.

Since the virus is predicted to last for years, those positions will be needed for a long time. Some estimates predict over 300,000 jobs will be available. coursera.org

How to apply to be a contact tracer in New York City & make $57k with benefits

On Indeed, 675 Positions are posted Nationwide, Salary ranging from $12 to $49 per hour

Bipartisan health experts recommended Congress spend $12 billion to hire an additional 180,000 contract tracing workers over the next 18 months

CDC Director: US has about 28,000 Contact Tracers, needs 100,000 (posted 6/23/2020)

CDC: Notification of Exposure: A Contact Tracer's Guide for COVID-19

Civil Unrest

Directive from the Attorney General
U.S. marshals told to prepare to help protect monuments nationwide as Trump targets people who vandalize structures during protests
U.S. marshals have been told they should prepare to help protect national monuments across the country, according to an email directive viewed by The Washington Post, as President Trump has vowed stern punishment for those who vandalize or destroy such structures as part of police violence protests.

In an email, Marshals Service Assistant Director Andrew C. Smith wrote that the agency "has been asked to immediately prepare to provide federal law enforcement support to protect national monuments (throughout the country)." The subject line of the message indicates it is an "Attorney General Assignment," suggesting it came from Attorney General William P. Barr. washingtonpost.com

Wisconsin Gov. Evers activates state National Guard in response
to civil unrest in Madison
Gov. Tony Evers on Wednesday afternoon authorized the Wisconsin National Guard to support police in response to civil unrest in Madison.

"The protests in Madison last night resulted in serious injury to bystanders as well as significant damage to state property," Evers said in the release. "The Wisconsin National Guard will serve in a limited authorization meant to make sure people can exercise their First Amendment rights while ensuring the safety of members of the public and state buildings and infrastructure."

Madison police reported damage to state buildings and a Molotov cocktail thrown into the City-County Building overnight Tuesday. Two statues were removed from outside of the Wisconsin State Capitol. A state senator also alleged he was assaulted by protesters while taking a video and had to lock himself in his Capitol office for safety, and a motorist said he was beaten and his vehicle damaged by demonstrators. channel3000.com

400 National Guard soldiers activated to guard DC monuments amid protests

Protesters Take Aim at Statue of Lincoln With Kneeling Black Man

Leader of Seattle's 'autonomous zone' says many protesters are leaving

Businesses sue Seattle over 'occupied' protest zone

Tampa police officers 'ambushed' early Saturday, chief says

Las Vegas, NV: Three Men Indicted For Setting Fire To Police Vehicle During Protest
 

Police reform, legislative developments

House set to take up police reform bill; Colorado may look into Elijah McClain case; Tucson police chief resigns
The House of Representatives is preparing to move forward with its police reform bill Thursday, a day after Senate Democrats blocked a package proposed by Senate Republicans because they argued that it wasn't enough to bring change needed in the aftermath of George Floyd's death.

Colorado Gov. Jared Polis said his legal council will look into how the state can get involved in probing the death of Elijah McClain, a 23-year-old Black man who died last August in police custody after officers restrained him by his neck.

Tucson's police chief abruptly resigned Wednesday after video footage showed an April incident that led to the death of a man in police custody and many questions about how officers handled the incident. usatoday.com

Senate Democrats Block G.O.P. Police Bill, Calling It Inadequate

RILA Joins Chorus Calling for Criminal Justice Reform
 

---

L.A. Sees Burglaries Up 95% in One Month
Los Angeles County and Los Angeles Metro Areas

- Total Incidents increased 31%
- Robberies: 31% increase
- Thefts: 25% increase
- Retail Larceny: 33% increase
- Burglaries: 95% increase
- Homicides: 0%

See the complete breakdown below:

May 12 to May 18, 2020 - Total # of Crime Incidents Reported: 706 - Robberies: 53 - Thefts: 136 - Retail Related Larceny: 80 - Burglaries: 62 - Homicides: 4 crimemapping.com

June 16 to June 22, 2020 - Total # of Crime Incidents Reported: 927 - Robberies: 88 - Thefts: 170 - Retail Related Larceny: 107 - Burglaries: 121 - Homicides: 4

FBI: Online crimes increasing in Florida, California, Texas, Ohio, and New York
Analysis of FBI data found that nearly $2 billion was stolen from US victims in 2019 just from business email compromise. After examining data collected by the FBI, researchers with the university's Internet Crime Research Report found that Washington, Ohio, California, and Florida have become hubs for internet crime since 2015. A team of analysts led by Dr. Michael Crain, director of FAU's Center for Forensic Accounting, pored through the FBI data between 2015 to 2019 to figure out which states had the highest number of victims and highest amount of monetary losses due to internet crime. techrepublic.com

Married NJ couple charged in $6 million online dating scam targeted 33 people
One victim, a finance director, embezzled $4 million from her employer "after exhausting her savings, liquidating her retirement account, borrowing from friends and family, taking out a personal loan, and maxing out her credit cards," according to a criminal complaint. nypost.com

Pre-Bankruptcy Retention Bonuses Under Fire
J.C. Penney CEO & Others' Pre-Bankruptcy Retention Bonuses Come Under Fire
Companies that are struggling to pay creditors and suppliers are managing to find millions of dollars to pay bonuses to their bosses. The payments, which are made just before a bankruptcy filing, appear to be legal and have been made by several companies.

J.C. Penney, which is closing 154 stores, paid its chief executive, Jill Soltau, $4.5 million. The chief executive of Whiting Petroleum, which sought bankruptcy protection in April, received $6.4 million, and Chesapeake Energy is paying bonuses ahead of an expected bankruptcy filing. Executives at Hertz also got payments before the rental-car giant sought bankruptcy protection.

Companies have said the payments are meant to help them retain qualified executives through the recession and bankruptcy.

But critics counter that the money would be better spent on rank-and-file employees. "It makes me angry because they are not taking care of the people who are actually making the money," said Liz Marin, who worked at Toys "R" Us when it filed for bankruptcy and is now an organizer in training at United for Respect, a nonprofit organization that seeks to help retail workers. Toys "R" Us paid bonuses to executives before its bankruptcy.

And of course the bonuses are far higher than what regular employees earn. Ms. Soltau's was many times the $11,482 the retailer's median employee, a part-time worker, earned during J.C. Penney's 2019 fiscal year, according to a securities filing. nytimes.com

Illinois Legislature OKs stiffer penalties for assaults on retail workers
Senate Bill 471 amends the "aggravated battery" section of law by adding the crime of assaulting or battering a retail worker who is fulfilling duties such as relaying health care or safety regulations from an employer or public health agencies. Rep. Marcus Evans Jr., D-Chicago, said the bill "sends a clear message" to workers in Illinois and across the country that they "must be respected and protected." He said retail workers assaulted for telling people to wear masks showed that the bill is needed. SB 471, which passed with a 95-10 vote in the House and 47-3 in the Senate, only needs a signature from Gov. JB Pritzker to become law, and it would take effect immediately when signed. journalstandard.com

US work visas frozen until year-end - despite business opposition
Visas allowing hundreds of thousands of people to work in the U.S. have been temporarily suspended by the White House. Along with the extension of a pause on green cards, the freeze will affect some 525,000 workers, including those on H-1B visas, seasonal workers, students on work-study summer programs, and au pairs. The ban has been met with criticism from many business leaders, who say it will drastically impede their ability to recruit global talent. President Trump says the move will help create jobs for Americans who've been affected by the pandemic. linkedin.com

More Kmart, Sears stores to close

Macy's is laying off 3,900 corporate workers

Chuck E. Cheese parent company files for Chapter 11

Security Industry Association Announces Virtual 2020 AcceleRISE Conference for Young Security Talent: July 27-31

 

Where Consumers Shifted During COVID-19, Ecommerce Fraud Followed

Attackers are following the money too

COVID-19 has quickly reshaped web traffic and application usage patterns. For example, traffic to food delivery has skyrocketed. The rapid shift in consumer behavior has morphed attack patterns, expanded the threat environment and added attack pressures against many site operators unaccustomed to so much attention from ecommerce fraud operators. They are largely mounting account takeover (ATO) attacks.

Logically, attackers are following the money. Greater traffic and transactions in new industries means more opportunities for fraud such as:

• Theft of credit card and financial information

• Placing unauthorized orders for goods or services using hijacked accounts

• Draining new pools of loyalty points to resell on the dark web

Ecommerce fraud attackers are taking advantage of rapid shifts. Security teams operating under shelter in place are less efficient. Those teams are shouldering new responsibilities for securing remote workers. Online merchants are pushing application changes more quickly; this results in more bugs and vulnerabilities going live. multichannelmerchant.com

Etsy's stock jumps to record, tripling in three months on surge in face mask sales

Coronavirus likely to delay Amazon Prime Day